New Delhi: Reliance Industries has purchased 5 million barrels of Iranian crude, Reuters quoted sources a saying on Tuesday. RIL reportedly purchased crude from
Tehran after the US temporarily removed sanctions on the oil.
The agency quoted two sources saying that RIL, operator of the world’s biggest refining complex, purchased the crude oil from the National Iranian Oil Co. One of the sources claimed that Reliance bought the crude at a premium of about $7 a barrel to ICE Brent futures. Sources could not confirm as to when the oil would be delivered.
Importantly, of late, Chinese independent refiners have been purchasing Iranian oil. The crude is often rebranded as originating from another nation.
Reliance did not respond to emails from the news agency.
In a significant development, President Donald Trump-led US administration temporary lifted sanctions for 30 days for the purchase of Iranian oil already at sea. The US has now lifted the sanctions on Iranian crude which are already loaded on tankers.
The deal marks India’s first purchase of Iranian oil since the world’s third-biggest oil importer and consumer halted imports from Iran in May 2019, months after Washington reimposed sanctions on Tehran.
The report of Iranian oil purchase comes after Indian refiners bought more than 40 million barrels of Russian crude after the Trump administration announced a temporary sanctions waiver this month to ease supply shortages.
Crude futures jump Rs 204 to Rs 8,549/barrel
Meanwhile, Crude oil prices jumped in futures trade today. The price increased by Rs 204 to Rs 8,549 per barrel as tensions remain over geopolitical developments in West Asia. On the Multi Commodity Exchange (MCX), crude oil for April delivery went up by Rs 204, or 2.44 per cent, to Rs 8,549 per barrel.
In the previous session, crude oil prices declined by Rs 1,186 to hit an intraday low of Rs 8,072 per barrel. It closed 9.36 down at Rs 8,345 on the MCX.
Analysts are of the view that crude oil prices are volatile as markets weighed conflicting developments around Iran and the Strait of Hormuz.
